5 Steps to Transform into a Modern Day CFO

1. Leverage latest tools and technologies

CFOs are now the stewards of new technology to unlock efficiencies and enhance agility. Modern CFOs understand the latest technologies and are ready to invest in them. They are not a naysayer of technology anymore. This helps businesses to become competitive and future-ready. The smart CFO understands the importance of disruptive technology to lead the growth story of business, overcome hurdles, and serve stakeholders better. As technologies such as artificial intelligence, automation, IoT, blockchain, and machine learning are impacting business decisions, CFOs have learned to unlock their full potential.

2. Critical problem-solving skills

Leadership teams depend on accurate and real-time information to champion critical business decisions. By prioritizing and leveraging technology, CFOs can streamline data that guide those decisions. A modern CFO is a multitasker who leverages technology to manage people productively, nurture stakeholder relationships, and optimize processes. By embracing new business processes, CFOs eliminate the adage of “we have always done it that way.” With more interdepartmental knowledge and intuitive problem-solving skills, today’s CFOs encourage teams to realize the potential of doing things in new ways, for business growth and longevity.

3. Deep understanding of cash management

The core responsibility of the CFO is to manage the company’s capital, profits, and expenses. The CFO’s office also owns the statutory and regulatory requirements, audits, and other financial aspects. So, how does a modern CFO become strategic and encourage innovation? A new-age CFO leverages technology to anticipate business outcomes, optimize resources, control costs, improve productivity, and plan the course of the business. Today’s CFOs use innovative technology to overcome bottlenecks in cash flow, gain data insights, and keep the business funded. For example, a new-age CFO understands the importance of shifting from a manual accounts receivable process to an agile and automated process flow.

4. Move beyond financial reporting and forecasting

A modern-day CFO undoubtedly is at the heart of strategic and financial decision-making and resource planning. They understand the pain points of a business and continuously strive to change the status quo. New-age CFOs no longer rely on historical financial reporting techniques for decision-making but use predictive models to drive growth. Modern CFOs also place a greater emphasis on non-financial KPIs, not limited to finance and accounting, to evaluate multiple aspects of the businesses. The role of the cfo today is more dynamic and not limited to financial reporting or planning. He or she actively participates in building the business strategy using analytical, risk management, and communication skills.

5. Ability to establish business or performance metrics

A CFO is adept at hitting the numbers and establishing processes to optimize operations, products, services, and stakeholders from a finance viewpoint. A high-performing CFO uses intuitive dashboards and key metrics to measure the company’s financial health, expenditure, cash flow, and resilience for unforeseen circumstances. Digital intelligence helps CFOs track business operations metrics in real-time and engage with multiple teams to help them see the bigger picture. A modern CFO uses relevant business metrics to advise on and bring changes to workflows, perceptions, and business goals.